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President Barack Obama begins three days of non-stop conferring with other world leaders tomorrow that will highlight his commitment to multilateralism and US engagement – even with America's natural foes – but threatens also to expose the scant dividends so far yielded by his open-arms approach.
Its dividend yield, by the way, is 6.5%.
This measure divides a stock's total return (that is, its EPS growth rate plus its dividend yield) by its P/E ratio.
The only exception to this rule occurs when the interest rate exceeds 10% and also exceeds the S&P 500's dividend yield by at least six percentage points.
As a rule of thumb, when interest rates on long-term Treasury bonds exceed the S&P 500's dividend yield by more than six percentage points, sell your stocks and buy bonds.
If the company's DPS in recent time periods has been roughly $1, you can find the dividend yield by plugging your values into the formula DY = DPS/SP; thus, DY = 1/20 = 0.05 or 5%.
Dividend yield:7%.
The dividend yields 1.41%.
The dividend yields 5.37%.
The dividend yields 6.9%.
Dividend yields 9.31%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com